Vanguard Corporation issued $$11,000,000$ of $10\%$ bonds on September $1,2023,$ due on

September $1,2029.$ The interest is to be paid twice a year on August $31$ and

February $28.$ The bonds were sold to yield $6\%$ effective annual interest. Grove

Corporation closes its books annually on December $31.$

Present value of $1$ for $12$ periods at $3\mathrm{.}0\%$

Present value of $1$ for $12$ periods at $5\mathrm{.}0\%$

Present value of an ordinary annuity for $12$ periods at $3\mathrm{.}0\%$

Present value of an ordinary annuity for $12$ periods at $5\mathrm{.}0\%$

Instructions

$($a$)$ Calculate the issuing price of the bonds $($show your work$).$

$($b$)$ Prepare the journal entries for $2024$ using the effective$-$interest method.

$($c$)$ Compute the interest expense to be reported in the income statement for the year

ended, December $31,2024.$

$($D$)$ On February $1,2025,$ the company retired $20\%$ of the outstanding bonds, for

$$1,0700$ for each $$1,000$ bond $($not including accrued interest$).$ What is the journal entry

to record this bond, and what is the journal entry to record the interest payment on

April $30,2025,$ for the remaining bonds.

$($E$)$ On February $1,2026,$ the company retired $20\%$ of the remaining outstanding bonds,

for $$1,110$ for each $$1,000$ bond $($not including accrued interest$).$ What is the journal

entry to record this bond, and what is the journal entry to record the interest payment on

April $30,2026,$ for the remaining bonds.